JD is it a safe short or an early reversal?JD on the 1H chart has been in a solid downtrend worthy of shorting.
However, the zero-lag MACD shows a line cross under the histogram and
a red to green there. The signal has curled. This looks like subtle
divergence. Price is in the area of the mean anchored black VWAP lines.
The mass index indicator is double tapping the reversal zone.
So, what you think? Is there more downside or instead is JD going to
bounce and move up? Please offer your comment !
BABA
SasanSeifi 💁♂️BABA 👉1D
Hey there! Let's take a look at what's happening on the daily chart. After some minor fluctuations between the $80 and $90 price ranges, things got exciting! The price broke through the $90 resistance level and soared all the way up to $102. Then, after a small correction and a pullback to the $90 resistance level, it's now trading around $100.
So, what can we expect next? Well, if the $90 price range holds up, we might see the price making its way up to the $108 and $115 supply zones. The possible trend is pretty clear. But, keep your eyes peeled! If the price dips below the support level, we could be in for some more corrections.
Just keep these scenarios in mind as you analyze the market. Remember, things can always change unexpectedly, so stay flexible in your trading approach.❗
Wishing you loads of success in your trading adventures, my friend!✌
❎ (DYOR)...⚠️⚜️
Sure, if you have any more questions or need further clarification, feel free to ask. I'm here to help!
And if you found my analysis helpful, I would appreciate it if you could show your support by liking and commenting. Thank you!🙌
Alibaba's Evolution: A Struggle for Restoration and Renewed...Alibaba's Evolution: A Struggle for Restoration and Renewed Confidence
Once hailed as a beacon of promise tied to China's expansive growth prospects, Alibaba finds itself navigating a complex narrative. The owner of revered e-commerce platforms Taobao and Tmall, as well as the behemoth Alibaba Cloud, the company has weathered a transformation from Wall Street's darling to a thorny challenge for investors in recent years. A series of setbacks, including the Ant Group's IPO cancellation and faltering growth, have propelled Alibaba's stock into a downward spiral, plummeting by more than 70% from its zenith at $317 per share.
Responding to this predicament, Alibaba is orchestrating a significant corporate overhaul, fragmenting its structure into six distinct units. Despite these steps, further actions are necessary to course-correct the beleaguered ship. This article explores two vital domains Alibaba must address to regain investor confidence.
Emerging as an e-commerce powerhouse, Alibaba's growth trajectory has expanded both vertically and horizontally, encompassing sectors like logistics, fintech, entertainment, cloud computing, and more. While the diversified business model garners applause, e-commerce remains the unequivocal core, accounting for a substantial 67% of the company's revenue in the fiscal year ending March 31, 2023. Notably, this segment contributed to the entirety of Alibaba's profits during that period, as other segments reported losses.
Yet, Alibaba's foundation remains predominantly anchored in Chinese e-commerce, presenting a challenge. The flagship endeavor led by Tmall and Taobao faced a 1% revenue dip over the last fiscal year. While pandemic-related lockdowns contributed, the rise of contenders like Pinduoduo and Douyin has intensified pressure. Alibaba must undertake a transformative journey to adapt before this challenge escalates.
In response, Alibaba's reorganization into six units seeks to empower each division with dedicated management, enhancing operational efficiency, market adaptability, decision-making speed, and incentive structures. This endeavor aims to resurrect the entrepreneurial spirit crucial for revitalization.
Investors must grant several quarters to assess the efficacy of these newly established teams. The e-commerce segment must rekindle growth momentum, ideally surpassing industry rates. As Alibaba realigns itself, the path forward holds intrigue as it strives to recapture its competitive edge.
Beyond operational excellence, capital allocation emerges as a pivotal arena requiring attention. Historically, Alibaba directed profits from its e-commerce pillar into high-growth domains like cloud computing and logistics. With autonomous subsidiaries, units now secure funding independently, easing e-commerce's burden.
Alibaba's surplus cash flow beckons strategic redirection to enhance e-commerce and shareholder value. This includes judicious investment in marketing and research, amplifying competitiveness. Share repurchases and dividend policies also warrant consideration, given historically low stock valuations. Fresh ventures are plausible, but discernment is crucial.
Alibaba stands poised to create shareholder value through astute capital allocation. This realm warrants vigilant investor scrutiny, given its profound impact.
Once a cornerstone of China's tech landscape, Alibaba's journey has been marred by errors and external challenges that eroded investor trust. Yet, hope gleams. Alibaba's premier domains remain potent. Restoration lies in honing these for enduring value. Through corporate restructuring, the company embarks on rejuvenation. Patience is vital, awaiting the fruits of this turnaround.
With renewed operations and strategic capital use, Alibaba's renaissance nears. The narrative could return to its former glory, focusing on nurturing its remarkable franchises.
ALIBABA first Golden Cross in 6 months. Buy signal.Alibaba (BABA) is completing today the first Golden Cross formation since January 23. This is a bullish medium-term pattern and along with the 1D RSI bullish trend on Higher Lows, it will most likely end with a Higher High on a 6 month basis.
As you see, the price recently broke above a Channel Up pattern, so we expect an aggressive rally to the Lower Highs trend-line, similar to those rises of January 2023 and June - July 2022. Our target is 116.00, even though there is potential for a direct hit within the 1 Year Resistance Zone.
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$BABA Bearish to Bottom PatternNYSE:BABA Bearish to Bottom Pattern with inverse head & shoulders pattern ready to break. The inverse head and shoulders is a bullish reversal pattern commonly observed in technical analysis of financial markets. It consists of three distinct troughs - a lower trough (the head) flanked by two higher troughs (the shoulders) on either side. This pattern suggests a potential shift from a downtrend to an uptrend.
The inverse head and shoulders pattern signifies a transition in investor sentiment, with the middle trough representing a point of extreme bearishness and the surrounding higher troughs indicating diminishing selling pressure. When the price breaks above the neckline (a level formed by connecting the highs between the shoulders), it confirms the pattern and suggests a potential upward move. This breakout is often accompanied by increased trading volume, reinforcing the likelihood of a trend reversal.
Traders and analysts consider the inverse head and shoulders as a reliable indication of a market bottom and a potential opportunity to enter long positions. It is important, however, to consider other factors and indicators alongside the pattern to make informed trading decisions.
AMZN - Rising Trend Channel [MID -TERM]🔹Breakout resistance at 136 and next resistance at 145
🔹Supports 136 in negative reaction.
🔹Technically POSTIIVE for medium long-term.
Chart Pattern;
🔹DT - Double Top | BEARISH | 🔴
🔹DB - Double Bottom | BULLISH | 🟢
🔹HNS - Head & Shoulder | BEARISH | 🔴
🔹REC - Rectangle | 🔵
🔹iHNS - inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️
$BABA Inverse Head & ShoulderNYSE:BABA Inverse Head & Shoulder. The inverse head and shoulders pattern is a bullish reversal pattern that is often seen in stocks that have been in a downtrend. The pattern is characterized by three troughs, with the middle trough being lower than the other two. The neckline is the horizontal line that connects the bottoms of the two outer troughs.
If the price of BABA breaks above the neckline, it would be a signal that the downtrend is over and that the stock is likely to move higher. The target price for the breakout would be the distance between the neckline and the head of the pattern.
Of course, no pattern is guaranteed, and there is always the possibility that BABA could break down below the neckline instead. However, the inverse head and shoulders pattern is a bullish signal that is worth watching for.
Here's Why $BABA Could Skyrocket Even Higher!Analysis:
Looking at the dataset, it's evident that both the Macro PVVM and Micro PVVM scores for Alibaba ( NYSE:BABA ) show an overall increasing trend over the examined period. The Macro PVVM went from a score of around 0.58 to approximately 54.24, demonstrating a significant uptrend. The Micro PVVM also moved from -53.71 to 40.23, showing a reversal from a bearish to a bullish momentum in the short term.
The close price of NYSE:BABA has been generally increasing along with the PVVM scores, indicating that the bullish momentum has been affecting the stock's price positively.
Key Takeaways:
There's an established bullish momentum, indicated by the upward trend in both the Macro and Micro PVVM.
The Micro PVVM has crossed from negative to positive, suggesting that the bearish short-term movement seen at the beginning of the period has turned into a bullish one.
The most recent close price of $98.33 is the highest over this period, further confirming the bullish sentiment.
Trading Strategy:
Given the bullish trend and movement, it would be a good strategy to maintain a long position on Alibaba. However, traders should keep an eye on the PVVM scores. If there's a sudden drop, especially in the Micro PVVM, it could indicate a reversal in the short-term movement.
Since both Macro and Micro PVVM are in positive territory and increasing, traders should look for opportunities to enter long positions on pullbacks, as the overall trend is upwards. Keep in mind the rule that the best long entries are when both PVVMs are low and start showing signs of strengthening.
$BABA Bearish to bullish reversal bottoming phaseNYSE:BABA Bearish to bullish reversal bottoming phase. The parallel down trend has ended and NYSE:BABA is currently in a bottoming pattern show on the weekly chart. This is a long term investment play that can take months before it can start to go higher.
Is JD a Chinese economy equity setting up a reversal?JD on the long term weekly chart appears to be in a descending wedge pattern which
would generate a bias for a breakout upside. Price is now supported by the one standard
deviation line below the VWAP bands anchored to 2019. The analysis of the ultralong term
volume profile is that the Point of Control is just below price and that the vast majority of
trading volume has been above the current price. I can readily presume that JD is at or
near a bottom and most certainly the 1, 2, and 3 year lows. Analysis on higher time frames
such as the weekly are more likely to be accurate with good signals. On the MACD signals
have crossed in mid-May and now ascending in parallel toward the zero line while price
is bouncing around at what I will call the bottom. Said another way, the MACD is showing
bullish divergence. The upside here over a long term could be as much as 250% and much
much more with a long expiration options contract. I will open a long trade here in
a small position with a stop loss below the POC line and DTA into it over time whenever there
is a pivot low on the weekly chart. I am confident that the Cinese economy with supposedly
zero inflation will be an excellent backdrop for Chinese stocks to run higher in due time.
AMZN - Rising Trend Channel [MID -TERM]🔹Support at 113 and Resistance at 144.
🔹Technically POSITIVE for medium-term long-term.
Chart Pattern;
🔹DT - Double Top | BEARISH | 🔴
🔹DB - Double Bottom | BULLISH | 🟢
🔹HNS - Head & Shoulder | BEARISH | 🔴
🔹REC - Rectangle | 🔵
🔹iHNS - inverse head & Shoulder | BULLISH | 🟢
Verify it first and believe later.
WavePoint ❤️
BABA - How About A Collar Trade?The green zone is long term support.
The Pitchfork projects path of price, on a Pendulum Swing basis.
The sliding parallel (white) marks the overshoot and projected support.
As we see, the steep down sloping yellow dotted resistance line was broken 5 weeks ago. But that's no reason to rush in. Why not wait for more facts?
Do we have facts now?
Yes, we have.
a) support at the sliding
b) today we see a close above the last high AND a break of the (grey horizontal) resistance.
How can we play this with low risk?
What about a Collar?
1. Buy Stock
2. Buy Put ATM
Optional:
- sell a longer dated Call (potentially limiting stock profit to finance the put)
- sell lesser Calls, to let the rest of the stock position ride, if price close ITM and calls away your (partial) position.
That's just an idea how to play it save.
Why save? What if BABA tanks?
- sell Put profit and buy more stocks to bring down the cost basis. Repeat until B/E or in profit. Additionally you can sell more Calls if they are above calculated cost basis.
Highest Risk: If the stock go to zero, then the initial investment of stocks is gone. Could it happen? Yes. High chance of happening? Don't think so.
Would love any input about this idea.
Happy weekend §8-)
LI , a Chinese EV manufacturer LONGLI has seen a 60% price rise since significantly beating the earnings estimates of the analysts.
LI competes with TSLA and NIO primarily in Chinese and perhaps a little in Scandinavia. It
does not import to North America. The 2H chart shows price rising consistently in a channel
between the first and second standard deviation lines above the mean anchored VWAP
demonstrating trend persistence and momentum. The zero-lag MACD shows a line cross
at the zero horizontal line and rising as confirmation of bullish momentum. I see $40
as a reasonable target at the level of the 3rd upper standard deviation lines. With the
next earnings report due August 21st, I will take a long trade of ten call options striking
$38.00 expiring 8/18/23. On the last trading day, this option had a low of $1.75 and
a high of $1.90 for an intraday rise of about 8%. The contracts will cost about $1900.
I am expecting about a 3% average rise compounded over 30 trading days or 250%
return on the trade.
Daily Market Analysis - MONDAY JULY 10, 2023Key News:
USA - FOMC Member Daly Speaks
USA - FOMC Member Mester Speaks
USA - FOMC Member Bostic Speaks
UK - BoE Gov Bailey Speaks
US stocks closed the week on a downward trend as investors carefully analyzed a range of data released earlier in the month. This data instilled confidence in the stability of the US economy, leading to expectations of prolonged elevated interest rates.
Throughout the week, equity markets encountered challenges stemming from positive economic data, sparking speculations of a longer period of higher interest rates. After fluctuating and contemplating the potential for rate cuts later in the year, it seems that the markets have come to terms with the idea that the economic cycle will unfold over an extended timeframe. Consequently, the S&P 500 recorded a 1.2% decline.
S&P 500 daily chart
The Dow concluded the week with a loss and closed lower on Friday as traders assessed a monthly jobs report for June that fell short of expectations, ending a streak of 15 months of meeting estimates. Nonetheless, there remains anticipation that the Federal Reserve will proceed with a rate hike later this month.
Dow Jones Industrial Average Index daily chart
The US economy added 209,000 jobs in June, which fell short of the projected 225,000 and represented a substantial decline from the 306,000 jobs added in the previous month. This figure indicates the slowest pace of job creation since December 2020, raising concerns about the overall strength of the labor market.
US Nonfarm Payrolls
Despite the disappointing job growth figures, there was a positive aspect to the report with regards to wage growth. Average hourly earnings in June increased by 4.4%, surpassing the estimated 4.2%. This suggests that workers are experiencing higher wages, which could potentially contribute to increased consumer spending and economic growth.
While the market still expects a rate hike in July, there is speculation among investors that the cooling labor market might deter the Federal Reserve from implementing further rate hikes beyond July. This sentiment is echoed in a note from Morgan Stanley, stating that the current data may not meet the criteria for the Fed to deliver a hike in September.
In other news, the US-listed shares of Alibaba (NYSE: BABA) experienced an 8% rise following the announcement of a $984 million fine imposed by Chinese authorities on Ant Group. This marks the conclusion of Ant Group's extensive regulatory restructuring process, which has been closely monitored by investors and industry observers.
These developments in the job market and the regulatory landscape have contributed to a dynamic and evolving market environment, where investors are carefully evaluating the implications for monetary policy and the performance of specific companies like Alibaba.
Alibaba stock daily chart
As the second quarter of the 2023 earnings season begins, analysts are anticipating a consensus that S&P 500 earnings per share (EPS) will decline by 9% year-on-year. This decline is attributed to stagnant sales growth and margin compression, highlighting the challenges faced by companies. However, there is a particular focus on the impact of artificial intelligence (AI) on companies, given the significant developments in the tech sector this year.
The extent to which S&P 500 companies can effectively leverage AI to generate additional profits remains uncertain. Therefore, investors will closely examine management guidance and commentary to identify the companies that have the ability to enable, scale, and benefit from AI in the long term.
Certain companies have already presented revenue and earnings outlooks that surpassed expectations, instilling confidence in their ability to navigate the current landscape. For example, Micron Technology (MU) provided optimistic revenue and earnings outlooks, while NVIDIA (NVDA) delivered significantly higher-than-consensus sales guidance for the second quarter.
However, the shine of AI has been somewhat dulled by potential restrictions on the export of AI chips to China, which poses a notable risk for companies operating in this sector.
Policymakers in the G4 countries, including the Japanese yen (JPY), have shown remarkable consistency in their approach, leading to limited potential for the US dollar to appreciate against other major currencies. With interest rates and equities experiencing fluctuations, there is less room for significant adjustments in foreign exchange (FX) markets.
The European Central Bank (ECB) has closely aligned its approach with that of the Federal Reserve, sometimes even surpassing it in terms of rhetoric. This has prompted a reevaluation of the short-term outlook for the Eurozone, despite slower economic growth.
The ECB's singular focus on combating lower inflation has provided support for the euro. However, there are limits to this approach, as extreme measures to control inflation may only be effective for a certain period, particularly when the economy is already experiencing a technical recession.
If the trend persists, the more hawkish members of the ECB may adjust their stance, potentially leading to a decline in the EUR/USD exchange rate back to 1.07.
EUR/USD daily chart
In the upcoming week, investors will be keeping a close eye on a range of important economic indicators and events. One key highlight is the release of the consumer and producer price indexes, which provide crucial insights into inflationary pressures in the economy. These reports will be closely scrutinized as inflation remains a key concern for market participants.
Additionally, the import and export price indexes will offer further indications of global trade dynamics and the impact of tariffs and trade policies on prices. This data can provide valuable insights into the health of the international trade sector and its potential effects on the broader economy.
Investors will also be closely monitoring the Michigan consumer sentiment and expectations report, as consumer sentiment is an important gauge of consumer confidence and spending patterns. This data can provide valuable insights into the strength of the consumer-driven sectors of the economy.
Furthermore, speeches from various Federal Reserve officials, including Barr, Mester, Daly, Bostic, Bullard, Kashkari, and Waller, will be closely watched for any hints or signals regarding the central bank's monetary policy stance. These speeches can provide valuable insights into the thinking of key policymakers and the potential future direction of interest rates.
Overall, the combination of economic data releases and speeches from Federal Reserve officials will shape market expectations and influence investor sentiment in the coming week. Market participants will be analyzing these indicators and events for potential impacts on monetary policy decisions and overall market trends.
ALIBABA broke above the yearly Resistance. Buy signal.Alibaba broke on Friday above the Falling Resistance that was initiated on January 26th.
That was also a crossing over the 0.236 Fibonacci level.
Technically that is a strong double bullish break out for a potential long term bullish reversal.
Trading Plan:
1. Buy on the current market price.
Targets:
1. 105.00 (Resistance 2 and Fibonacci 0.618) and 120.00 (Resistance 3 and Fibonacci 1.000).
Tips:
1. The RSI (1d) has been on a Rising Support since March 10th. A Bullish Divergence and clear sign of a long term bullish reversal.
Please like, follow and comment!!
A different way to identify momentum with MACD (BABA)Before coming up with this idea I asked myself the following question: is there a way to visualize whether sellers or buyers are in control during a certain move/period of stock price action?
In order to achieve this, I decided to connect the moves with the associated changes on the MACD histogram bars and try to plot the "area's" on the Histogram bars as a form of "accumulative momentum".
With BABA, it can be seen seen that a "change of character" has occurred since march of 2022 where for the first time the area above the 0 line between the histogram bars became larger than the area below it. Is this further evidence that the stock has been in accumulation mode ever since? Time will tell!
YINN - a leveraged bullish ETF for Chinese stocks.YINN is a 3X leveraged bullish ETF of Chinese stocks. As can be seen on this one hour chart,
YINN has jumped nearly 30% since the beginning of the moth. On the chart is a moving average
ratio indicator ( with settings SMA7 / SMA28 ratio ). When the ratio crosses the zero line, the
shorter average is rising faster than the longer average demonstrating bullish momentum. Here
I used it as an entry signal. ( the exit signal would be the ratio dropping below the zero
horizontal line which has not yet occurred) For confirmation and further entry justification,
the volatility indicator shows spikes above the running average volatility in order to be
that there is enough volume and price action to get into a good trade in the direction of
the trade. Fundamentally, the Chinese economy is open and growing. the CCP has resisted the
urge to raise prime rates as compared with Western central banks. ( BABA and NIO have
good current price action.) Given the guidance of the chart, YINN seems to be a
good long trade I will continue to add to the trade when the chart tells me the time is right.
$PDD - The Appeal 🔥 NASDAQ:PDD appealing setup - remaining subdued throughout the day, setting the stage for a potentially stronger push. If it surpasses $82.83, we can expect a move towards $84, followed by a possible pullback before attempting to test the 61.8% retracement level at $88.45 (gap fill). PDD's showing promise with the recent distribution of $697 million USD in deep discounts to generate consumer demand. The extended rally is also fueled by China stimulus hopes ( NYSE:BABA , NASDAQ:JD and major Chinese tickers are witnessing the same effect).
Part II of BABA thesis using Wyckoff phases and volume analysisThis Idea is part II to the previously published BABA idea using Wyckoff's accumulation method. This idea includes the identification of the different Wyckoff accumulation phases and the characteristic accompanying volume analysis.
All information is on the chart!
NQdecipher
BABA with a Bullish Breakout on the Daily trendBABA has recently confirmed a bullish breakout on the daily trend, indicating a potential continuation of the upward momentum. The formation of a triple bottom pattern further reinforces the bullish outlook. As long as the support level holds, we can expect the price to rally towards the recent highs around $105. Traders should monitor the price action for further confirmation and adjust their strategies accordingly. It's important to stay informed about the latest market conditions and news related to BABA for a well-rounded analysis.